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Peculiarities of FX spot transactions involving third currencies
Last modified: 2015-10-12
Abstract
The purpose of this article is to present in detail the characteristics and mechanism of implementation of spot foreign exchange transactions involving third currencies in terms of the currency dealer. Below are the details of the actions of the dealer and the financial calculations accompanying various stages of the transactions. Acted out all options (two direct quotes, two indirect quotes and direct and indirect quotes) for the most advantageous purchase of a third currency.
Keywords
FX spot, cross rate, direct quotes, indirect quotes, spot market